Commentary

V4.112 Exemption—nature of land, interests, rights and licences

Part V4 Exemption, zero-rating and reduced rates

V4.112 Exemption—nature of land, interests, rights and licences

V4.112 Exemption—nature of land, interests, rights and licences

Meaning of 'land'

HMRC takes the view that 'land' includes buildings, civil engineering works, walls, trees, plants, and other structure or natural object in, under, or over it so long as they remain attached to it1. Where fixtures are included with a building or land, they are not treated as supplies for VAT purposes and their liability is the same as that of the land or buildings with which they are being supplied2.

A distinction is drawn between developed land and undeveloped land.

Developed land comprises the site of a building3 or a civil engineering work4. The 'site of a building' means a reasonable plot of land surrounding that building. What is a reasonable plot must depend on the size, nature and situation of the building and the nature of the surrounding land5.

The supply of a partly constructed building follows the liability of the completed building6. 'Partly constructed' in the February 2008 edition of Notice 708, included any building which has progressed beyond the foundation stage7. This requirement does not appear in the current (November 2019, para 4.7.4) edition, which suggests that a partly constructed building includes land where 'a building is clearly under construction'. This follows the decision in Stapenhill8. This case is quoted by HMRC in VCONST03550. However, the guidance goes on 'It is accepted that a building is being constructed when work has progressed above foundation level. This is usually when walls begin to be constructed upon the foundations. These walls

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